Measuring Production Efficiency and Structural Factors in Sheep Farming: Empirical Evidence from North-Eastern Anatolia, Türkiye

This study evaluates the technical efficiency and structural factors influencing sheep farming enterprises operating in the TRA2 sub-region (Ardahan, Kars, Ağrı, and Iğdır provinces) of North-Eastern Anatolia, Türkiye. Primary data were collected from 138 sheep farms selected through a stratified random sampling method. The technical efficiency of the enterprises was evaluated using a dual methodological framework combining Data Envelopment Analysis (DEA) and Stochastic Frontier Analysis (SFA). Input-output variables integrated into the efficiency frontier model included the gross production value of sheep farming as the output, alongside roughage expenditure, concentrate feed expenditure, family labor, and veterinary/medicine costs as input variables. The empirical findings yielded a mean technical efficiency score of 0.657, supported by a Likelihood Ratio (LR) test statistic of 20.569 (p < 0.01), confirming significant technical inefficiency across the sampled farms. To identify the socio-economic determinants of efficiency, a Tobit regression analysis was performed; while operator age exhibited a positive relationship, sheep farming experience, household size, and formal education duration showed negative associations with efficiency scores, though none reached statistical significance. Additionally, Factor Analysis was employed to uncover the underlying structural multidimensional factors shaping sheep production dynamics in the region. The findings highlight key managerial and operational constraints, providing actionable insights for policymakers to promote sustainable smallholder livestock development in mountainous agro-ecological zones.